On January 1, 2012, Chang Corp. had 530,000 shares of common stock outstanding. During 2012, it had the following transactions that affected the Common Stock account.

February 1		Issued 146,000 shares
March 1		Issued a 20% stock dividend
May 1		Acquired 117,000 shares of treasury stock
June 1		Issued a 3-for-1 stock split
October 1		Reissued 62,300 shares of treasury stock

A. Determine the weighted-average number of shares outstanding as of December 31, 2012.

Answer: 2171375

B. Assume that Chang Corp. earned net income of $3,351,000 during 2012. In addition, it had 103,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2012. Compute earnings per share for 2012, using the weighted-average number of shares determined in part A.